Goodrich Petroleum Announces 2010 Capital Expenditure Budget, Acquisition of Additional Acreage and Operational Update
HOUSTON, Dec. 3 /PRNewswire-FirstCall/ — Goodrich Petroleum Corporation (NYSE: GDP) today announced its preliminary capital expenditure budget for 2010, a significant acreage acquisition in the Angelina River Trend, and an operational update on its Haynesville Shale and horizontal Cotton Valley Taylor sand activities.
2010 CAPITAL EXPENDITURE BUDGET
The Company today announced a preliminary capital expenditure budget for 2010 of $230 million, flat with the Company’s revised 2009 budget. The Company anticipates drilling 46 gross (24 net) horizontal wells for the year, with approximately two-thirds of the budget being spent on its core Haynesville Shale assets in Caddo and DeSoto Parishes, Louisiana. The preliminary budget includes approximately $190 million in drilling and completion expenditures and $40 million allocated to leasehold and infrastructure. The Company estimates production volumes will grow by 15 – 25% in 2010 versus 2009.
Angelina River Trend Acreage Acquisition
The Company announced it has entered into an agreement to acquire approximately 12,000 net acres in Nacogdoches and Angelina Counties, Texas which it believes to be prospective for the Haynesville Shale. With the additional acreage, the Company now has approximately 85,000 net acres prospective for the Haynesville across its entire acreage position. On the basis of recent drilling results in the area and offset well data, the Company now feels it has approximately 22,000 net acres prospective for the Haynesville in the Angelina River Trend area. The Company plans to drill its first Haynesville well on its Angelina River Trend acreage in the first half of 2010.
HAYNESVILLE SHALE ACTIVITIES
Caddo and DeSoto Parishes, Louisiana
The Company has completed an operated well in the Bethany-Longstreet field of Caddo and DeSoto Parishes, Louisiana, the Goodrich Petroleum Company – Garland 25 H-1 (33% WI), at a 24-hour peak initial production rate of 20,200 Mcf per day with 7,700 psi on a 24/64 inch choke. The Company has also participated in the completion of the Chesapeake Energy Company – Sentell 35 H-1 (27% WI), with a 24-hour peak initial production rate of 13,900 Mcf per day with 6,800 psi on a 22/64 inch choke.
COTTON VALLEY TAYLOR SAND HORIZONTAL ACTIVITIES
The Company has completed its AB Taylor 3H (100% WI) well, a horizontal Cotton Valley Taylor sand well in the Beckville/Minden area of Rusk and Panola Counties, Texas. The well is still early in its flowback, with a 24-hour peak initial production rate to date of 7,000 Mcf per day. The Company has approximately 40,000 net acres in the Beckville/Minden area of Panola and Rusk Counties, Texas and approximately 8,600 net acres in the South Henderson field of Rusk County, Texas, where the Cotton Valley Taylor sand is prospective.
Certain statements in this news release regarding future expectations and plans for future activities may be regarded as “forward looking statements” within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as financial market conditions, operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, as well as other risks discussed in detail in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels.
Goodrich Petroleum is an independent oil and gas exploration and production company listed on the New York Stock Exchange. The majority of its properties are in Louisiana and Texas.
SOURCE Goodrich Petroleum Corporation